Have you had your eye on an Apple USB Charger or perhaps an Apple Case for your iPhone? Well, if you’re American you might want to pony up for them now. The Verge is reporting that some accessories are now taxed at 25% because of the ongoing trade war between the US and China. Specifically chargers and phone cases:
But the codes involved in Apple’s “adapters, chargers, cables and cords” stayed on the list, and, starting last September, they have been taxed at a 10 percent rate when they entered the US from China. The same is true for iPhone cases and the iPad’s leather covers, both of which are also subject to the tariff, per Apple’s letter. On Friday, that jumped to 25 percent. (Apple declined to comment when reached by The Verge.)
So far, that cost has been born entirely by Apple and its suppliers. The prices listed on Apple’s website haven’t budged since the tariffs went into effect. At $70 for a charger (which would cost you as little as $11 under other circumstances), it’s possible Apple’s margins are wide enough that they’re able to simply eat the extra cost. It’s also possible that Apple’s Chinese manufacturing partners were willing to offer a slight discount in light of the tariffs. It could even be that, since September, Apple has been able to shift its supply chain around enough to dodge the impact of the tariff completely. But given Apple’s massive scale and intense quality demands, such a move might have been more expensive than just paying the tariff.
So, the bottom line is that you should expect prices to increase. And what’s worse is as this trade war escalates, other Apple products will start to get hit. And Apple would not be able to dance around this which means you’ll pay more. Plus, it is likely other companies will start to feel this as well which means that you as the American consumer will ultimately lose.
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This entry was posted on May 14, 2019 at 8:27 am and is filed under Commentary with tags Apple. You can follow any responses to this entry through the RSS 2.0 feed.
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Now Would Be A Really Good Time To Buy Apple Branded Accessories As Prices Are Likely To Increase In America
Have you had your eye on an Apple USB Charger or perhaps an Apple Case for your iPhone? Well, if you’re American you might want to pony up for them now. The Verge is reporting that some accessories are now taxed at 25% because of the ongoing trade war between the US and China. Specifically chargers and phone cases:
But the codes involved in Apple’s “adapters, chargers, cables and cords” stayed on the list, and, starting last September, they have been taxed at a 10 percent rate when they entered the US from China. The same is true for iPhone cases and the iPad’s leather covers, both of which are also subject to the tariff, per Apple’s letter. On Friday, that jumped to 25 percent. (Apple declined to comment when reached by The Verge.)
So far, that cost has been born entirely by Apple and its suppliers. The prices listed on Apple’s website haven’t budged since the tariffs went into effect. At $70 for a charger (which would cost you as little as $11 under other circumstances), it’s possible Apple’s margins are wide enough that they’re able to simply eat the extra cost. It’s also possible that Apple’s Chinese manufacturing partners were willing to offer a slight discount in light of the tariffs. It could even be that, since September, Apple has been able to shift its supply chain around enough to dodge the impact of the tariff completely. But given Apple’s massive scale and intense quality demands, such a move might have been more expensive than just paying the tariff.
So, the bottom line is that you should expect prices to increase. And what’s worse is as this trade war escalates, other Apple products will start to get hit. And Apple would not be able to dance around this which means you’ll pay more. Plus, it is likely other companies will start to feel this as well which means that you as the American consumer will ultimately lose.
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This entry was posted on May 14, 2019 at 8:27 am and is filed under Commentary with tags Apple. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.